25 Feb
2014
25 Feb
'14
6:19 p.m.
Just a note, btw - All those monies deducted by individual contributors (at least), in
addition to whatever else) also need to be accounted for in Sudo Room's financial
reporting to the IRS.
sent from eddan.com
On Feb 25, 2014, at 5:44 PM, "Patrik
D'haeseleer" <patrikd(a)gmail.com> wrote:
But if membership fees are > $75/yr (and didn't we put a minimum of $10/mo?), that
clause would not apply. The lowest membership level at GAFFTA and the Crucible is exactly
$75/yr, which is probably why they can make it fully tax deductible. Of course, the
Crucible also makes far more from class fees than membership fees.
If you pay more than $75/yr, then the organization needs to give you a written statement
explaining how much is deductible. *Except* they don't need to give you a statement if
the only things you get are "token items" (such as key chains and T-shirts?) and
"membership benefits that can be disregarded" (such admission to the facilities
and member events).
If you read that by the letter, that might mean that the organization doesn't need to
give you the statement, but you still won't be able to deduct those "certain
membership benefits"?
Gah, who wrote this kinda crap? Spaghetti code ain't got nothing on it...
http://www.irs.gov/pub/irs-pdf/p526.pdf
Patrik
On Tue, Feb 25, 2014 at 3:50 PM, Richard Karnesky
<rakarne(a)sandia.gov> wrote:
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http://lists.sudoroom.org/listinfo/sudo-discuss On 02/25/2014 04:48 AM, Danny Spitzberg wrote:
You can usually deduct a donation minus the "fair market value" of what
rewards (t-shirts, etc) you get in return ... I'd be curious to see what
gray area works in out favor here with membership dues - if they can be
construed as donations
GAFFTA membership fees are fully tax deductible, as are The Crucible's.
Per IRS Publication 526:
"Certain membership benefits can be disregarded. Both you and the organization can
disregard the following membership benefits if you get them in return for an annual
payment of $75 or less.
1. Any rights or privileges, other than those discussed under Athletic events ,
earlier, that you can use frequently while you are a member, such as:
a. Free or discounted admission to the organization's facilities or events,
...
c. Preferred access to goods or services,..."
When/if sudo is recognized federally as a 501(c)3, I'd imagine dues would be
deductible (unless I'm unaware of some additional tangible benefit of membership).
Some organizations consider t-shirts and similar to be "token items" that do
not decrease the deductible amount of your contribution (they cost the organization less
than $10.20 each (presumably in quantity) and they bear the name/logo of the organization
for donations greater than or equal to $51/yr.
--Rick